Demo foreign exchange trading is commended as the way to start by nearly everyone, including us here on this site. Trading in a demo account lets you begin to know your broker’s platform and services, discover the weaknesses and strengths of your system and figure out your own weaknesses and strengths as a trader at the same time. Nonetheless, forex demo accounts do have some disadvantages. Shall we have a look at what to keep an eye out for and how to avoid the traps.

We presume that a demo account and a real money account from the same broker are going to look the same, offer the same services and work in the same way. Usually this is right.

On occasion you might even find that the demo accounts are managed on a completely different platform. The broker might have many reasons for doing this. Sneaky reasons would involve tricks like drawing you in with something that’s user friendly and maybe even stacked in your favour (if it doesn’t access the real market) so they can grab your cash and then watch you lose it in the real world. So check before you sign up.